Memecoins Are Collapsing! Is It Time to Invest in Fundamentals?

Data from CryptoQuant reveals a steady decline in the dominance of memecoins since September 2022

Crypto memes had a strong presence in the altcoin market up until April 2024, but their dominance has since seen a significant decline. This could indicate a shift in trader strategies, moving away from speculative trading and turning towards fundamentals instead.

According to data from CryptoQuant, the dominance of memecoins began to decrease steadily from September 2022, reaching a low of 0.03 or less by May 2024. This trend marks a significant change compared to the previous few years.

Despite the decreasing dominance, the liquidity of memecoins has shown a remarkable increase of almost 2x since the年初. It reached a new all-time high of 128 million dollars in June, showcasing a complex evolution in the crypto market sentiment, despite the recent corrections and massive sell-offs that followed.

Memecoins like Dogwifhat (WIF), Memecoin (MEME), and Book of Meme (BOME) saw an impressive liquidity growth of 200% to 4000% in native units, while the overall crypto market capitalization decreased to 2.4 trillion dollars, and memecoins saw a sell-off to 49.9 billion dollars.

This transition might be signaling a growing maturity in the crypto market, where investors are pivoting towards assets with strong fundamentals, real utility, and a large market capitalization. Key events of 2024, like the memecoin frenzy on Solana (SOL) and increased institutional interest, could also be impacting the market dynamics.

The decreasing dominance of memecoins could be an indication of an evolving crypto market, where speculation gives way to a more rigorous analysis of fundamentals. This could mark the end of an era of meme-based trading and pave the way for a new phase of growth supported by more stable and economically sound assets.

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News source：https://www.kdj.com/cryptocurrencies-news/articles/memecoins-collapsing-time-invest-fundamentals.html

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